Swedish Buy Now, Pay Later (BNPL) leader Klarna has further expanded its cross-sector reach, strengthening its foothold in car subscription payments via a deal with FINN.
The Munich-based car subscription startup will integrate Klarna’s suite of flexible payment method options, including the popular instalment-based payment methods that have surged in popularity over recent years.
German customers of FINN will be the first to gain access to Klarna’s ‘monthly invoice’ product, a service that enables them to pay and manage monthly car subscription fees until the final invoice when cars are returned.
FINN offers customers single monthly payment options which covers the cost of the car, maintenance, insurance and roadside assistance. Car subscription is gaining traction as a preferred means for car ownership, expected to reach €8.5bn in value by the end of 2025.
Maximilian Wühr, Co-Founder and CEO of FINN, said: “Tailored payment methods are crucial for high-priced goods. Klarna’s seamless integration ensures flexibility and simplicity for our customers, without disrupting our operations.”
The car subscription market is one of many that Klarna has expanded its payment services into, with its reach encompassing e-commerce, technology, retail and more.
Klarna asserted that for subscription-based merchants, like FINN, it has recorded an increase in signup conversions by 47%, cutting involuntary churn by 31% and has stated it is committed to take on 100% of credit risk offerings for subscription-based products.
Nico Schenck, Head of Germany at Klarna, added: “At Klarna, we are always looking for ways to help our customers save time, money and worry less about their finances.
“With this agreement, we’re bringing our flexible and intuitive payment solutions into the fast-growing car subscription market, empowering drivers to manage their payments effortlessly in the Klarna app. This partnership underscores our commitment to innovation and making modern mobility accessible to more people.”
